Prosecution widens corruption probe involving Roh's family

SEOUL, March 31 (Yonhap) -- A growing graft scandal involving family members of
former President Roh Moo-hyun broadened Tuesday as prosecutors began examining
allegations against the son-in-law of Roh's elder brother.
The investigation follows a report by local broadcaster MBC that Roh Gun-pyeong's
son-in-law, identified only by his surname Yeon, received US$5 million from Park
Yeon-cha, the head of shoemaker Taekwang Industry Co. who is at the center of the
scandal.
Yeon received the money through APC, a Hong Kong-based subsidiary of Taekwang
Industry, MBC reported. Park is known to have been a major financial sponsor of
the former president and his elder brother.
"We have not acquired any statement from Park Yeon-cha or any evidence from bank
account records as of yet, but we will examine the facts as the suspicion has
been raised," said Hong Man-pyo, head of the Supreme Prosecutors' Office's
investigation planning division.
Park has been at the center of the bribery scandal in which billions of won were
reportedly given to political heavyweights and former government officials in
exchange for various favors.
Roh Gun-pyeong is on trial for allegedly aiding Park to bribe a former head of a
state firm to buy a failing securities firm at a bargain price in 2006.
"We have no plans as of now," Hong said when asked by reporters whether
prosecutors intend to directly interrogate the former president. "We will have to
look into APC's accounts," he added.
The MBC report suggested that the money allegedly transferred may have been
intended to be used as Roh's retirement funds. In the past, Yeon worked as a
director at a software company founded by Park, according to the report.
A number of key legislators from both the ruling and main opposition parties, as
well as a former aide to Roh during his term, have been investigated on suspicion
of receiving bribes from Park. A former vice minister of public administration,
who also allegedly took money from Park, was indicted earlier in the day.
Prosecutors said they also plan to look into financial transactions between Park
and Ra Eung-chan, chairman of Shinhan Financial Group Co. Investigators
discovered that Ra transferred 5 billion won (US$3.58 million) to an account
owned by Park in April 2007.
Park is believed to have spent one billion won of the money to buy paintings, the
same amount Ra later wired to Park to maintain the 5 billion-won deposit.
Prosecutors believe the transaction was made as an investment rather than to ask
for particular favors.
odissy@yna.co.kr
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